Why Home Parties are an Effective Business Model
Guest Blog Post by Deb Bixler 2/10/12
There are many different types of business models to use when starting a home business. One of the most successful models is the home party plan. It is no surprise that many business began with home party selling. What do you call those re-usable plastic storage containers in your kitchen drawer? Yes, you call them Tupperware – but that’s the company name, not their actual name. Tupperware became so popular that we now know the products by the business name. All that name recognition from a home party business!
In its most basic form, the home party plan business is a method of product distribution through independent contractors. These contractors are often referred to as consultants. This type of business is also known as direct sales.
The Birth of Home Parties
The birth of the home party industry was in the 1930s. Stanley Home Products sold their wares through door-to-door salesmen. However, one customer invited guests over to her house when one of the salesmen visited. This salesman became very successful by presenting his products to several women at one time. The company realized the benefit of this type of business model and converted their sales force to home party selling. After World War II, more companies began to emulate this form of selling and the industry eventually expanded to the billion dollar industry we have today.
Why Does the Home Party Business Model Work?
Since direct sales and home party businesses have existed for many years and have produced so many successful companies, the model has stood the test of time and is a proven money-maker.
* You are able to sell to multiple people at the same time.
* Many different products can be sold with the method. The range of products that
can be sold at home parties is astonishing.
* Overhead costs are low as you do not need office space. You can also store many
products at home, and order other products to be shipped directly to the buyer. No warehouse space is needed.
* You can recruit people to work as part of your team. These people can present products at parties, sell your product line, and increase your sales exponentially.
* Direct sales companies offer many perks. You can get free gifts and heavily discounted items. Top consultants can also earn free cruises, vacations and other exciting prizes.
* What could be more fun than having a party as your work environment?
Though it takes discipline, effort, perseverance and a dedication to marketing, the home party plan business is an enjoyable way to earn money. The ability to be your own boss, set your own pace, and work in a fun and casual environment, makes this the perfect business model for many entrepreneurs.
Deb Bixler is a home party plan business coach who teaches systems that create success in any party plan business.